Mayor Bob Corker on Tuesday announced that 18 small businesses in Chattanooga have received funds that have helped them grow and expand through the venture capital program established soon after he took office.
He also said two local banks have agreed to make major investments in the fund, which is down to $600,000 after the initial loans.
During his campaign, Mayor Corker committed to making the recruitment of venture capital a priority for his administration. Very soon after his election, he recruited Southeast Community Capital to Chattanooga which made available to local businesses its pool of over $50 million in capital. In addition, the Mayor created the Chattanooga Opportunity Fund, a $1.5 million fund established by the city for investment in locally owned start up companies, minority owned companies and existing small businesses.
Through those efforts, 18 local businesses which employ 170 people have received a total of $3.2 million in funding, it was stated. All of the loans that have been made during that period remain current and the funds have reported no losses to date.
Mayor Corker said, "Our emphasis on bringing venture capital to Chattanooga and our creation of the Chattanooga Opportunity Fund have caused 18 local companies to have the access to the funds they needed to grow and expand. I am very excited about the results we have achieved, the impact that it has had on our business climate and the jobs that have been created as a result... and I believe the best is yet to come."
Mayor Corker also announced that more funding will soon be available through the Chattanooga Opportunity Fund to local businesses. To date, SunTrust Bank and First Tennessee Bank have committed to making a $500,000 investment in the fund. The Mayor praised both local banks for their vision and commitment to the community.
Local companies funded through the initiative include Tricycle, ACH Commerce, Diagnostic Testing Services, Southern Glow Candles, C. J. Enterprises, Stone Cup Coffee, D's What, When & Where, KD Stewart Enterprises, Applied Thermal Coatings, The Water Den, Cutting Edge Dental, Philbo Furniture, ProNvest, KK&T Enterprises, VIP Gift, Westwood Enterprises and Picou & Associates.